Businesses go to great lengths to convince consumers to try their products and services and to continue to purchase those offerings in the future. Branding is a common marketing practice that businesses use to retain customers. It involves creating a distinct company image or theme that forms a link between the company and quality products and services in the minds of consumers. Logos are a common type of tool that companies use in the branding process. Consider how logos and branding can help market your small business.

Basics of Logos and Branding

A logo is a symbol, word or combination of the two that a company uses in conjunction with its products or services. Many well-known companies have iconic logos. For example, McDonald's uses a large golden "M" as a logo and Apple uses a stylized image of an apple with a bite taken out of one side. Designing and displaying logos is a way that business get consumers to remember and recognize their products and services. Companies can register logos as trademarks with the U.S. Patent and Trademark Office; trademark holders are granted the exclusive right to use a registered mark.

Product Visibility

One reason that designing and displaying a logo is important is that logos can make a business more visible to consumers. For instance, when a customer is driving in an unfamiliar city looking for a place to eat, logos of familiar restaurants tend to stand out. If the driver associates a familiar logo with food that he likes or places that have a good reputation, it might convince him to stop rather than frequent an unfamiliar restaurant.

Consumer Loyalty

The ultimate purpose of branding and designing logos is to create a sense of loyalty among customers. If a customer is satisfied with certain company's products, he might eventually come to favor its products over competitors, even if he has not tried the competitors’ products. Logos can act as a stamp or seal of quality that loyal customers seek out. In some cases, customers might be willing to pay more for a product branded with a logo that they associate with quality, even if the product itself is actually no better than the products offered by competitors.

Rebranding

If a business fails to create a successful logo design, it may consider "rebranding." Rebranding is the process of replacing a stale company image with a new one, which often involves creating a new logo. Rebranding can help keep companies relevant and rid themselves of unfavorable attitudes consumers may harbor toward certain product lines or images associated with the company.